Supreme Court of New Jersey
Aetna Insurance Company, as Subrogee of Higinio Otero, Plaintiff-Appellant v. Gilchrist Brothers, Inc. and Johnnie…
April 7, 198185 N.J. 550
Summary
The Supreme Court of New Jersey affirmed the Appellate Division's dismissal of Aetna's subrogation claim, holding that the insured had no right to recover PIP benefits under N.J.S.A. 39:6A‑12, so Aetna could not be subrogated, and that the general release did not affect Aetna because it was not a party to the settlement. The Court also rejected the application of the single‑controversy doctrine to preclude Aetna's suit. Justice Sullivan dissented, arguing that the subrogation bar is improper.